Page 30 - Strategic Marketing Complete
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BUILDING BRANDS
Apple: a life-changing brand
In the first week of reach that magic $1-trillion mark, brands are a company’s most
august 2018, apple the share had to be worth $207,05 valuable asset
Now, we know that today the most
– and this at a time when the
became the first US Apple brand was valued at around valuable assets of companies are
company to reach a $106-billion (according to Brand invariably their brands. This raises
the question of how many brands
Finance in February this year),
market capitalisation of a significant portion of the total a company may own, and I’m not
$1-trillion US dollars. market cap. However, the value referring here to names or mere
had been reduced by 27% from the
labels: I mean serious brands that
Something rather previous year, losing Apple its #1 add value, have loyal customers,
special, writes Jeremy spot in the Global Top 500 Brands. command a price premium, have a
future, and make their owners very
Interestingly, this markdown was
Sampson. the result of brand valuation being wealthy. Ideally, they will be the
a measure of long-term future market leader – i.e. a mega-brand,
expectations, based on a 5-year or have the potential to become the
n Apple’s case, $1 000 invested in explicit future forecast. Brand leader; a contender brand. Not rats
its shares a decade ago (August valuations represent the net present and mice – fighting brands.
to August), would today be worth value of expected brand earnings Another question to ask is, how
$9 222, a nine-fold increase. To now and into the future. many brands can a company afford
to support?
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